The Australian Competition and Consumer Commission (ACCC) will be reviewing Coles proposed takeover of the Supabarn grocery supermarkets.

ACCC Chairman Rod Sims said: “Given Supabarn’s position as a significant independent supermarket chain, an important focus of the ACCC’s review will be whether its removal as a competitor would substantially lessen competition between supermarket chains.”

“The review will also examine each of the individual local markets in which the Supabarn stores operate, and any effect on grocery wholesaling and supply markets,” he said.

Chairman Sims said that the ACCC will be seeing if the takeover would be in breach of Section 50 of the Competition and Consumer Act (2010). Section 50 does not allow for acquisition to occur if it will remove competition in the marketplace.

The ACCC said it could not however stop the takeover (or any other) based merely on any perception that it could potentially “impact on the character of a local area.”

Consumers, suppliers, supermarket operators and any other interested parties can make a submission to the ACCC about the takeover up until mid July 2015.

Supabarn Background

Supabarn has a number of large supermarket stores across NSW and the ACT.

The acquisition will not include SupaExpress and Supabarn Express which are independently owned shops.